Entellus Industries Raises ₹50 Crore to Expand Rare Earth Manufacturing Capacity

Entellus Industries has secured ₹50 crore ($5.5 million) in its second funding round led by ZeroW, a boutique investment firm focused on deep-tech and emerging sectors. The investment marks a significant step in scaling India's first rare earth metals and alloy manufacturing operation.

The Chennai-based company previously raised $12 million from Silicon Valley venture capital firm Social Capital to establish NdPr metal and bonded powder alloy manufacturing plants in Tamil Nadu. ValPro served as transaction adviser for the latest funding round.

According to the company, the new capital will fund expansion into sintered alloys and support commercialization of existing products. The expansion is expected to enable production capacity of approximately 2,000 tons of magnets annually.

Simha Kumar, CEO of Entellus, stated that demonstrating technical capabilities in rare earth metal and alloy manufacturing represents a significant achievement for the company. "We are the first ones to achieve it verifiably in India," Kumar said, adding that the company aims to establish India as a global hub for rare earth magnet manufacturing.

The investment comes amid broader efforts to strengthen domestic manufacturing of critical materials through initiatives such as Make in India. Global supply chains for rare earths and magnet materials are undergoing structural realignment, creating opportunities for new manufacturing centers.

ZeroW is backed by the Mekapati Family Office, promoters of the KMC Group, described as one of India's largest infrastructure conglomerates. The firm specializes in investments in deep-tech and emerging sectors.

Founded in 2022, Entellus produces NdPr metal, bonded powders, and strip-cast alloys used in permanent magnet applications for electric vehicles, wind turbines, defense systems, and advanced electronics. The company operates manufacturing facilities in Tamil Nadu with emphasis on quality standards and operational efficiency.

Rare earth materials are considered strategic inputs for various technology and defense applications, with supply chains historically concentrated in specific geographic regions.